Problem regarding the comprehensive income

Reference no: EM13954423

Comprehensive Income

Assume that you are the accountant for Ellis Corporation, which has issued its 2014 annual report. You have received an inquiry from a stockholder who has questions about several items in the annual report, including why Ellis has not shown certain transactions on the income statement. In particular, Ellis's 2014 balance sheet revealed two accounts in Stockholders' Equity (Unrealized Gain/Loss-Available-for-Sale Securities and Loss on Foreign Currency Translation Adjustments) for which the dollar amounts involved were not reported on the income statement.

Required

Draft a written response to the stockholder's inquiry that explains the nature of the two accounts and the reason the amounts involved were not recorded on the 2014 income statement. Do you think that the concept of comprehensive income would be useful to explain the impact of all events for Ellis Corporation? Why or why not?

Reference no: EM13954423

Questions Cloud

What is the probability of winning : What is the probability that a randomly selected U.S. resident did not live in Missouri? Show step by step work. Round solution to the nearest thousandth.

Involving treasury stock on statement of cash flows : From the following list, identify each item as operating (O), investing (I), financing (F), or not separately reported on the statement of cash flows (N).

What is the total binding energy of the alpha : Radioactive phorsporous-32 has been used to study bone metabolism and for the treatment of blood diseases. What is the activity of a sample of 12.2x10^16 atoms if it has a half-life of 109 days?

Effective techniques for making decisions : Having read Chapter 5 on decision making, learning, creativity, and entrepreneurship, you are now familiar with some of the techniques and tools that managers use for making good decisions or having good decisions in place. You should have a clear..

Problem regarding the comprehensive income : Assume that you are the accountant for Ellis Corporation, which has issued its 2014 annual report. You have received an inquiry from a stockholder who has questions about several items in the annual report, including why Ellis has not shown certai..

Calculate the radioactive disintegration constant : A radio active substance has a half life of 30 days. Calculate the radioactive disintegration constant and The average life

Reporting changes in stockholders equity items : On May 1, 2013, Ryde Inc. had common stock of $345,000, additional paid-in capital of $1,298,000, and retained earnings of $3,013,000. Ryde did not purchase or sell any common stock during the year. The company reported net income of $556,000 and ..

Qualitative research methods relevant to homeland security : Compare the major approaches to research design and demonstrate an understanding of the principles and processes involved in developing and addressing a specific research question.

Stockholders equity category of jackson company : The Stockholders' Equity category of Jackson Company's balance sheet as of January 1, 2014, appeared as follows: Preferred stock, $100 par, 8%, 2,000 shares issued and outstanding $200,000 Common stock, $10 par, 5,000 shares issued

User Account

All Pages